Minnesota AG Sues Earned Wage Access Provider over Alleged Payday Lending Violations

Short summary

Minnesota's Attorney General sued an earned wage access provider for operating as an unlicensed lender, charging APRs of 300-700% versus the state's 50% statutory cap. The provider allegedly disguised loans as voluntary advances while requiring preauthorized repayment and limiting cancellation options. Fintech companies should audit their product structures, licensing, fees, and disclosures against evolving state regulations.

• •Minnesota AG alleges earned wage access provider violated payday lending laws without required licensing
• •Company charged 300-700% APR versus state statutory cap of 50%, with disguised loan structures
• •Fintech firms should audit compliance across all state jurisdictions for similar regulatory exposure

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